Nov 22, 2021 15:18 UTC
  • Afghanistan's financial and bank payment systems in disarray, says UN

The United Nations in its latest report has warned that the economic cost of a banking system collapse in crisis-stricken Afghanistan "would be colossal."

In a report on Afghanistan's banking and financial system, the UN Development Programme (UNDP), the global body’s development network, Monday called for urgent action “to prevent the banking system from collapsing" in the war-torn South Asian country.

"Afghanistan's financial and bank payment systems are in disarray. The bank-run problem must be resolved quickly to improve Afghanistan's limited production capacity and prevent the banking system from collapsing," the report noted with concern.

It could take decades to rebuild the banking system if it collapses, according to the report.

According to Press TV, the country has been teetering on the brink of a major humanitarian catastrophe following the botched exit of the US-led international forces and the Taliban’s sweeping takeover three months ago.

In recent weeks, UN agencies have sounded alarm bells, warning that millions of Afghans could run out of food before the onset of winter and around one million children are at the risk of starvation.

The unfolding crisis has also affected the already fragile banking system in the country, especially with billions of dollars in Afghan assets frozen by the US.

“We need to find a way to make sure that if we support the banking sector, we are not supporting Taliban,” Abdallah al Dardari, Head of UNDP in Afghanistan, was quoted as saying by Reuters.

“We are in such a dire situation that we need to think of all possible options and we have to think outside the box,” he said.